Balanced Volume Oscillator Download for MetaTrader 5 – Free – [TFlab] – MT4/MT5 Resource

This indicator uses color-coded histograms to provide a clear picture of market volume flow, showing whether volumes are increasing or decreasing.

Different histogram colors in this oscillator (such as red, green, yellow, purple, and blue) represent different volume levels, allowing traders to quickly identify divergences and potential reversal zones (PRZ).

Balanced Volume Oscillator Specification Sheet

The following table provides a brief description of the details of this indicator:

Indicator Overview

In the Balanced Volume Oscillator, the histogram bars are designed to show the current volume relative to the average period volume.

Each bar is color-coded to represent a specific volume change compared to the period average Fibonacci levels :

• Red : Volume is below the cyclical average
• Green : Volume is above 38.2% Fibonacci level
• Yellow : Volume is between 38.2% and 61.8% Fibonacci levels
• Purple : Volume is between 61.8% and 100% Fibonacci levels
• Blue : Volume is above 100% Fibonacci level

Indicators are in an upward trend

The chart under review involves the GBP/USD currency pair. The red bars in the Balanced Volume Oscillator histogram indicate heavy volumes.

Traders can initiate a Buy position by observing an increase in trading volume (purple and blue bars) and receive confirmation through the formation of a bullish candlestick near key support levels.

Indicators are in a downward trend

On the price chart of the AUD/USD currency pair on the 15-minute time frame, the price reached new highs and the histogram turned yellow and purple.

This color change indicates an increase in market volume, signals the formation of bearish divergence in the market and increases the likelihood of a trend reversal.

In this case, traders should wait for confirmation, such as the formation of a reversal candlestick or a price breakout above resistance, before placing a trade.

Indicator Settings

The indicator settings are as shown below:

• Volume calculation period : number of periods for trading volume calculation
• Theme : Automatically adjust the display theme
• Red coloring of negative bars : displays negative volumes in red
• Bar color green in the range 0 - 38.2 : Displays the volume between 0 and 38.2 in green
• Yellow bar color range 38.2 - 61.8 : Displays the volume between 38.2 and 61.8 in yellow
• Purple bar color range 61.8 - 100 : Displays volumes between 61.8 and 100 in purple
• Water coloring for bars above 100 : Shows volumes above 100 in light blue

Conclusion

This indicator uses different color coding to show volume changes relative to period averages, allowing for a better understanding of market trends.

Oscillator performance is more accurate and efficient with short time frames , such as 15 minutes.

For more precise analysis, traders can utilize the Auto Fibo indicator as a complementary tool to this indicator.